2Q Revenues: $14.5 billion (+1%)
2Q Earnings: $2.5 billion (-5%)
YTD Revenues: $28.5 billion (+2%)
YTD Earnings: $5.0 billion (+1%)
Comments: Pharmaceuticals sales were $8.1 billion in the quarter, down 2%. Gilenya, Afinitor, Tasigna, Galvus, Xolair, the Q Family and Jakavi contributed $4.5 billion or 31% of group sales, up 13%. Generics impacted sales by approximately $0.8 billion due to Diovan and Zometa, but a U.S. generic for Diovan has yet to be approved by FDA, forestalling a more dramatic drop in sales. Alcon sales increased 3% to $2.7 billion, led by growth in the Surgical franchise (+5%). Sandoz sales increased 3% to $2.2 billion driven by the Fougera acquisition and increases in retail generics and biosimilars sales. Vaccines and Diagnostics sales were $411 million, up 18% driven by seasonal influenza vaccines and bulk pediatric shipments. Consumer Health, which comprises OTC and Animal Health, had sales of $1.0 billion (+11%).